Council Takes First Steps Towards Bond Referendum

Two of Raleigh's biggest needs are housing and transportation. On Tuesday, the Raleigh City Council, took the first step toward a bond referendum for more than $200 million in housing and transportation projects.

If approved by the voters in the fall, the bond would fund $203 million - $101.5 million in affordable housing projects and $101.5 million in transportation capital projects.

The proposed transportation bond would make funds available for street, sidewalk, and infrastructure projects including efforts related to bus rapid transit and neighborhood traffic management campaigns.

Proposed housing projects could include housing development and preservation, homebuyer assistance programs, homelessness prevention campaigns, and major affordable housing project development.

"The city has debt affordability totaling $203 million … and it comes without a tax increase," said Allison Bradsher, the City's chief financial officer. "This is what we have been referring to as steady state."

Steady state began this fiscal year to take advantage of the City's borrowing capacity that is freed up when older bonds are repaid. By earmarking those dollars for new project, the City can propose bonds to voters that do not require a tax increase. It also supports advanced planning for larger projects, determining feasibility and a better cost estimate for larger projects.

On the May 5 consent agenda, the Council will set the public hearing date for consideration of the bond referendum. If the Council approves that vote, the public hearing will be held May 19. Following the hearing, Council approves bond orders and call for a referendum. The bonds will then appear on the Nov. 3 ballot.